Denver —
The US$130-million open-pit operation, which began in 1996, is on the eastern tip of Sulawesi island in North Sulawesi province. It has produced more than 1.3 million oz. gold. On an annual basis, output was about 300,000 oz. gold at a cash operation cost of US$120-150 per oz.
Newmont holds an 80% interest in Minahasa through its subsidiary, P.T. Newmont Minahasa Raya.
Newmont’s team plans to work with both local and national government representatives to arrive at both a closure plan and a 5-year reclamation plan. The company has also set aside funds for a reclamation guarantee.
Mining is expected to finish by year-end, though lower-grade stockpiles and rinsing of heap-leach pads will ensure gold production for about another year. The mine should be completely closed by 2003, by which time reclamation should be in full swing.
Although Newmont’s experience at Minahasa has been profitable, operations have not been without incident. In January 2000, the North Sulawesi government halted mine production briefly in an effort to extract additional revenues from the company by imposing a tax on overburden. Newmont narrowly averted an expensive situation by reaching a settlement with the Department of Mines and Mineral Resources.
In early 2001, the mine was closed briefly when locals overran the mine and mill, claiming they had not been properly compensated for their land. In late 1999, the company began operations at the giant Batu Hijau copper-gold mine on Sumbawa island, 950 miles east of Jakarta. The US$1.8-billion mine, in which Newmont holds a 45% interest with Japanese and Indonesian partners, is expected to last another 20 years.
Six other operations, held by various companies, are slated for closure. Among them is the Kelian gold mine of
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